Under the Affordable Care Act, employers with 50 or more workers are required to provide health coverage to their workers or pay a penalty. The mandate was scheduled to begin in 2014.

"We recognize that the vast majority of businesses that will need to do this reporting already provide health insurance to their workers, and we want to make sure it is easy for others to do so," said Mark Mazur, assistant Treasury secretary for tax. "And we are taking action."

Some health-care analysts are not surprised at the delay in the employer mandate, attributing it to politics and a rush to pass the highly complicated health reform legislation.

Concern about rising health-care costs triggered by the employer mandate has led many companies to cut back on full-time employees. There also continues to confusion about the law among employers and even health insurance consultants.

“With mid term election next year, if the process turned into a disaster, it could cost Democrats seats," said Dave Smith, president of Kearny Street Consulting. “I think as we get closer to October, you will see the individual health exchange program be delayed also. Exchanges aren't ready or tested.”

The business community, particularly retail and food service, really wanted this delay, said Brad Guest, partner at Subsidium Healthcare. The Administration decided that retreating a bit was the best way to advance long-term, he said.

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